Hyundai Targets 30% Cut in EV Material Costs, Plans More Affordable India-Focused Models

Hyundai Motor Company plans to develop more affordable electric vehicles for India as part of a global programme to reduce EV material costs by 30% by 2030.

The carmaker will develop regionally optimised models for price-sensitive markets and widen its use of cost-effective battery chemistries. It will also target savings through next-generation motors, inverters and power electronics systems.

“For EVs, we will build economies of scale by strengthening regionally optimised line-ups, not only in advanced markets with models like the Ioniq 3, our first EV designed for Europe, but also in emerging markets like India,” Scott Lee, executive vice-president and head of finance at Hyundai Motor Company, said at the company’s 2026 CEO Investor Day.

“We will also expand the use of cost-effective batteries, including LFP, and develop next-generation motors and inverters. Through power electronics system development, we aim to reduce EV material costs by 30% by 2030,” he added.

The cost-reduction target applies to Hyundai’s global EV operations. India, however, is expected to benefit from the company’s focus on products developed around regional customer and market requirements.

Hyundai has confirmed that a new compact electric SUV designed and localised for India is part of its immediate product programme. The model was included among the company’s global launches planned over the next eight months.

The upcoming SUV will give Hyundai a locally developed offering in a higher-volume part of India’s electric passenger vehicle market. The company currently sells the Creta Electric and the premium Ioniq 5 in the country.

Battery chemistry will be one of Hyundai’s main cost levers. The company plans to use high-nickel batteries for performance-focused vehicles, mid-nickel batteries for value-oriented models and LFP batteries for entry-level products and markets where pricing is critical.

Hyundai said its mid-nickel battery would cost around 30% less than the high-nickel battery currently used in models such as the Ioniq 5. It would also provide greater energy density than LFP, allowing more energy to be stored within a similarly sized battery pack.

The carmaker plans to begin integrating mid-nickel batteries into production vehicles in the first half of 2027 and expand their use across volume models from 2028.

Hyundai is also working to improve the serviceability of high-voltage battery systems and increase commonality across vehicle development, design and manufacturing. These measures are intended to reduce costs throughout the vehicle lifecycle rather than concentrating savings only at the development stage.

For India, the strategy points to products with specifications and battery choices tailored to local requirements. The upcoming compact electric SUV will bring this approach to a higher-volume segment of the market.